As previously reported, Needham analyst Richard Kugele upgraded HP Enterprise (HPE) upgraded to Buy from Hold after the company reported the first year over year revenue increase since 2011 and following the announcement that it plans to spin off and merge its $18B Enterprise Services business with CSC (CSC), creating a new $26B entity for $8.5B in total consideration. Upon closing in March 2017, HP Enterprise will receive $1.5B in an immediate cash dividend, transfer $600M of net pension liabilities and a $300M EDS bond, and have $1.6B of the company's debt paid off, Kugele tells investors in a research note, adding that its shareholders will also receive a 50% stake in the new entity valued at more than $4.5B. He has a $22 price target on HP Enterprise's shares.